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Sun Slips on Storage

Sun reported its second consecutive quarter of profitability with its third-quarter results today, although storage continues to be a blot on the vendor's financials. (See Sun Delivers Quarter of Growth, Sun Returns to Profitability, and Storage Slows Down Sun.)

On a GAAP basis, Sun's earnings were 2 cents on net income of $67 million, compared to a net loss of 6 cents and $217 million in the year-ago quarter. Analysts had estimated earnings of 1 cent.

The vendor's quarterly revenues were $3.283 billion, up 3.3 percent on the same period last year, but below analyst estimates of $3.42 billion.

Revenues from Sun's data management division, which includes storage, were $550 million, down 0.2 percent year over year, prompting CEO Jonathan Schwartz to voice his displeasure on a conference call tonight. "Our storage business showed pockets of strength, but wasn't as strong as I would have liked," he said.

The results suggest that Sun has still got plenty of work to do around its storage offerings. The vendor, which has struggled to swallow its $4.1 billion StorageTek acquisition, has spent the last year or so trying to make sense of its storage business. (See Sun to Acquire StorageTek for $4.1B, Sun Returns to Profitability, and Sun Reveals Roadmap.)

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